Thailand Targets Top Halal Hub Status in Southeast Asia by 2028

In a bold move to redefine its economic landscape, Thailand is setting the stage to become the premier halal hub of Southeast Asia by 2028, aiming to boost its GDP by an impressive 1.2%, which translates to roughly 55 billion baht. This ambitious initiative, unveiled by Prime Minister Srettha Thavisin following a recent cabinet meeting, underscores Thailand’s commitment to expanding its footprint in the global halal market, currently valued at a staggering US$2.1 trillion and growing at an annual rate of 7.5%.

The cornerstone of this visionary plan involves the establishment of a national halal industry committee alongside the Thai Halal Industry Centre. These bodies are expected to play pivotal roles in amplifying the international appeal of Thai food products and services, thereby attracting more tourists and invigorating the economy. The dialogue between Prime Minister Srettha, the King of Brunei, and Malaysia’s prime minister has even opened discussions on a collaborative halal food center, highlighting the regional importance of this initiative.

Despite the global halal market’s expansive growth, Thailand’s share has seen a decline, from 4.1% a decade ago to 2.7%. However, the country has shown signs of a rebound, with halal food product exports in the first 11 months of 2023 reaching 217 billion baht, a 2.6% increase from the previous year. With over 15,043 halal food producers and more than 3,500 halal food establishments, Thailand is poised for a significant leap forward in the halal sector.

Prime Minister Srettha is optimistic about the nation’s potential, emphasizing the government’s dedication to not only establishing halal industry centers but also to broaden the market for halal products. The vision extends to making Thailand a global halal kitchen, a move that promises to elevate the country’s culinary and cultural profile on the world stage.

However, the path to becoming a halal hub is not without its challenges. Deputy government spokesperson Rudklao Suwankiri has pointed out several obstacles, including disjointed promotional efforts and a lack of accountability among agencies and halal standard certification units. These issues pose significant barriers for entrepreneurs eager to enter the halal market.

To counter these challenges, Thailand’s strategy focuses on five key product categories: food, fashion, pharmaceuticals and herbal products, cocoa, and services and tourism. By honing in on these areas, the government aims to not only enhance GDP by 1.2% but also create approximately 100,000 jobs annually over the next five years.

The initiative will be driven by three main strategies: stimulating demand, supporting supply, and improving environmental standards, all while encouraging investment in the burgeoning halal industry. This comprehensive approach signifies Thailand’s resolve to overcome hurdles and seize the vast opportunities within the global halal market, setting a precedent for economic growth and cultural integration in Southeast Asia.